PROJECT REPORT

On
Use fo IT by IT Department to track taxpayers.
in partial fulfillment for the award of the degree
of

POST GRADUATE DIPLOMA IN MANAGEMENT (2014-16)

Institute of Management Studies, Ghaziabad

Submitted To:

Submitted By:

DECLARATION
We declare that the project entitled Use of IT by IT Department to track
taxpayers submitted for the PGDM Degree is our original work and the project
has not formed the basis for the award of any degree associate ship, fellowship or
any other similar titles.

ACKNOWLEDGEMENT
We have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. We
would like to extend my sincere thanks to all of them. We are highly indebted to
(professor) for their guidance and constant supervision as well as for providing

necessary information regarding the project & also for their support in completing
the project.

TABLE OF CONTENTS.
Introduction..

Executive Summary....

Objectives...

Conclusion..

Bibliography..

INTRODUCTION
Stepping up measures to recover over Rs 1,00,000 crore of unpaid taxes,
the Income Tax (I-T) Department has set up a special cell to track taxpayers who
are "untraceable" or have reported inadequate assets to pay back tax demands.
The department has also decided to search and approach every possible database or
agency, ranging from the Registrar of Companies (RoC), Financial Intelligence
Unit, banks to local police stations, municipal authorities and network of informers
for any clue about such taxpayers.
"The special cell will liase with all the I-T ranges across the country and obtain
data from various government databases. The department will also sift information
on such taxpayers in its own databases like PAN card and 360-degree profiling," a
senior I-T official said.
The Central Board of Direct Taxes (CBDT) in June this year constituted a
committee under Director General (Administration) to examine pending cases on IT demands under the categories "assessees not traceable" and "no assets/
inadequate assets for recovery".
The I-T department has recently decided to publish the names of defaulters who
owe more than Rs 10 crore as unpaid taxes.

The department has decided to send show cause notices to such assessees, who
have reported "no assets/inadequate assets for recovery", by this month end asking
why their names should not be published and put in the public domain.

OBJECTIVES
Subsidy Tracker 2.0
A growing number of state and local governments are disclosing which companies
they are giving tax breaks and other subsidies in the name of job creation and
economic development. Yet much of that information is being disseminated
through hard-to-find reports and web pages. SUBSIDY TRACKER brings
together the information from those far-flung sources--along with unpublished data
obtained through open records requests--to create the first national search engine
for economic development subsidies.
Each entry identifies the recipient company and, depending on availability,
provides data on the dollar value of the subsidy, the program and state or local
agency involved, the location of the subsidized facility, and the employment
impact of the subsidy. Each entry also indicates where the data came from, so the
user can go to the original source for additional details. For more information on
the data, see the User Guide.
Subsidy Tracker is a work in progress. We are continually adding data, both
published and unpublished, from more programs and increasing the years of
coverage. Subsidy Tracker currently contains data on 265,000 subsidy awards
from 551 programs in all 50 states and the District of Columbia.
Subsidy Tracker now includes parent company data for many of the recipients,
both in the individual entries and in 1,415 parent company summary pages, which
can be accessed directly from our expanded search form below. Our Subsidizing

the Corporate One Percent report summarizes what the new data show. This
enhancement builds on the Megadeals feature we added in 2013. It is now easy to
use Subsidy Tracker to find both the companies with the largest aggregate awards
and those with the largest individual awards. Tax Breaks and Inequality is a new
report based on a mash-up of Tracker data with low-wage employers and
companies linked to members of the Forbes 400.

TurboTax
TurboTax is an American tax preparation software package developed by Michael
A. Chipman of Chipsoft in the mid-1980s. Intui tacquired Chipsoft, based in San
Diego, in 1993. Chipsoft, now known as Intuit Consumer Tax Group, is still based
in San Diego, having moved into a new office complex in 2007. Intuit Corporation
is headquartered in Mountain View, California.
TurboTax for the Mac was originally named Macin Tax, and was developed by
Soft View. Soft View was in turn purchased by ChipSoft.
TurboTax is one of the most popular income tax preparation software packages in
the United States, along with its main competitors ,H&R Block at Home and Tax
ACT.
TurboTax Estimated Taxes is an online estimated income tax payment calculating
and filing service. For taxpayers who file quarterly estimated payments, it provides
payment calculators and allows e-filing of estimated tax payments. Automatic
deadline reminders help users avoid late payments. The record of past payments
can be automatically imported into TurboTax at tax-filing time, which saves the
trouble of typing in that history.

Integrated Taxpayer Data Management System (ITDMS)

Income Tax Department implemented a data mining that generates the 360 degree
profile of an entity by compiling information from all data sources to track tax
payments.
The Directorate General of Income Tax (Investigation) is responsible for
undertaking investigations under the Income Tax Act of Central Government to
check for evasion of taxes and circulation of black money. For this purpose, the
government regularly tracks income of high net worth individuals and companies
to ensure all appropriate tax payments are made by them. For this purpose, the new
Integrated Tax Payer Data Management System (ITDMS) assists in generating a
360 degree profile of an entity by compiling information from all data sources. In
case of an individual, the family tree of the person is also created and it also links
the information to all the related entities in which person is being investigated has
interest. The government has implemented the tool in all 20 Directorate General of
Income Tax (Investigation). So far, ITDMS has proved beneficial in tracking tax
evasion from high net individuals. For instance, the software assisted the
department to track a person who managed to get a fake identity and three PANs to
evade Rs. 100 crores in taxes.

SIGTAS
The Standard Integrated Government Tax Administration System (SIGTAS) is an
integrated information system that enables governments to automate the
administration of taxes and licences. This software is designed to meet the needs of
developing countries who wish to increase their control over state revenue by
equipping
themselves
with
computerized
systems.
Since 1996, SIGTAS has been implemented in 24 countries located in Africa, the
Caribbean,
the
Middle
East,
Eastern
Europe
and
Asia.
SIGTAS was designed to adapt to the changes affecting the countrys tax policy.
Accordingly, declaration forms, penalty rates and interest can be modified without
programming. Thanks to its integrated nature, SIGTAS is able to manage every
facet of the tax management process including:

Taxpayer registration;
Handling of tax declaration forms;
Assessments (including payments and withholdings);
Collections case management and objection case management;
Cashing, penalties and calculation of interest and penalties;
Audit (case tracking and follow-up).

The software also provides for documentation management, objections (appeals)

and payment agreements handling. In addition, SIGTAS offers the possibility of
developing interfaces to share data with external systems such as customs,
government
financial
software
or
other
government
divisions.
SIGTAS can operate in three languages simultaneously, which makes it possible
for tax agents to perform operations in the language of their choice and facilitate
correspondence with taxpayers.
TAX TYPES SUPPORTED BY SIGTAS

Income Tax;
VAT, sales taxes and other indirect taxes;
Licences and permits (alcohol, professional, etc.);
Pay As You Earn (P.A.Y.E.);
Excise Tax;
Driving Licences and Motor Vehicle Registration;
Licences;
General Income;
Property Taxes;
Withholding Taxes;
And others.

MODULES
The following diagram illustrates the comprehensive suite of modules that are
implemented in accordance with the Client's requirements, when introducing the
SIGTAS information system solution.
BENEFITS

SIGTAS is fully integrated, it supports all tax administration processes in

one integrated system;
SIGTAS is comprehensive, it supports most types of taxes and licenses
including VAT, Excise and Property Tax;
SIGTAS uses a centralized taxroll across all tax types and modules;
SIGTAS provides taxpayers with electronic services over the Internet,
allowing them to interact with the tax authority and conduct electronic
transactions (such as electronic filing and payment) through a safe, modern
and efficient channel;

SIGTAS provides management tools, to track amounts assessed, collected

and outstanding including aging of arrears;
SIGTAS increases operational efficiency through computerization of tax
administration;
SIGTAS enhances taxpayer service, it includes a suite of account query and
analysis features;
SIGTAS improves control over taxpayer compliance by providing late
filing/late payment reminders and case management features;
SIGTAS reduces the learning curve by providing a standard, user-friendly
graphical interface;
SIGTAS protects all information through tight, role-based security rules;
SIGTAS ensures data integrity, with data validation and a solid database
design;
SIGTAS restricts sensitive transactions, such as refunds, based on approval
tracking;
SIGTAS is a multilingual platform that contains its own dictionary. Tax
officers can use the system in the language of their choice, and taxpayers can
receive correspondence in their preferred language;
SIGTAS accommodates changes in tax forms, tax rates, penalty and interest
rates without programming;
SIGTAS optimizes decision-making by providing operational and strategic
management reports;
SIGTAS integrates seamlessly with other mission-critical government
systems, and statistical sampling tools;
SIGTAS is personalized to each countrys requirements. Each country
operates its own, tailored version.

APPLICATIONS AND INTERFACES

E-Tax Services
The eTax Services module leverages information and communication technologies
in order to generate strategic, managerial and operational benefits. It aims to
reduce taxpayers cost of compliance while simultaneously improving taxpayer
compliance rates. It also reduces the cost of tax declaration processing by the
Revenue Administration.

Benefits

Seamlessly integrated with SIGTAS in order to manage electronically filed

declarations submitted by taxpayers through the Internet thereby increasing
efficiency and minimizing data-entry errors;
Low transactions costs for such routine interactions as filing declarations,
updating personal information, communicating between the taxpayer and the
tax administration, and others;
Guides the user through a clear, intuitive step by step approach to electronic
transactions;
Performs built-in accuracy and validity checks, such as disallowing any
submissions that have missing mandatory fields;
Allows taxpayers to interact with the tax administration in a secure and
confidential manner from anywhere, at any time, and in accordance with
security standards that are applicable for such wide public web applications;
Includes advanced user identity authentication and maintains a detailed audit
trail of all electronic transactions;
Provides the tax administration with a virtual public service desk, a new
channel through which the administration can consolidate its links with the
taxpayer community;
Provides access to information that empowers the taxpayer community.

SIGTAS-PT
Used in conjunction with the property tax (SIGTAS-PT) module, SIGTAS
provides functionalities for the preparation of the real estate assessment role,
computerization of property assessments and the preparation of the annual property
tax and other property-related taxes, such as the water tax. The property tax
module can be interfaced to the property publication system and to the classic
geographic information systems (GIS) in land registry or planning offices.
TRS
SIGTAS can also be used in conjunction with the Title Registry System (TRS).
This module, especially adapted for departments responsible for titles of
ownership, was originally designed to manage ownership rights, stamp duties as
well as ownership history, particularly the monitoring of legal and conventional
mortgages.
TaxWise
New

Stay informed during tax season The latest news from our Customer
Support team can be viewed right on the home page of the TaxWise
program.
Easily update the tax program and formsusing menu options within
TaxWise. Or schedule updates to be downloaded and installed during offhours, when it wont interfere with business.
Safely deliver completed returns directly from TaxWise to the clients
secure folder in PortalSafe, our cloud-based document sharing system.
Your client receives an automatic email with instructions for viewing and
downloading the tax return. (Requires a PortalSafe subscription)

Flexibility

Prepare returns without a mouse by using quick keyboard shortcuts or use

the mouse to take advantage of toolbar buttons and right-click pop-up
menus.
"Link" to supporting forms using the QuickLink feature OR open forms
directly from the "Find a Form" screen.
Easily adjust the size of on-screen form text
Open multiple instances of TaxWise, allowing you to view more than one
return at a time
Pre-load the most commonly used forms and preferences so you only have
to do it once.
E-file one return at a time OR multiple returns of all types together: federal,
state, and requests for extensions.
Create returns without having the SSN or ITIN; add this information once
obtained.

Instant Error Checking TaxWise checks for errors in three ways:

Keystroke-by-keystroke
Entry-by-entry
Entire return

Automatic Fill-Ins

ZIP Codes: Enter a ZIP code and TaxWise automatically fills in the city and
state.
EINs: Enter an Employer Identification Number (EIN) once and TaxWise
stores that information and automatically completes the name and address
every type you enter that EIN.
"Official" Entries: Drop-down lists show the IRS-acceptable entries where
applicable. Type the first letter of the desired entry and TaxWise does the
rest.

Color Coding optional color coding identifies information required for

electronic filing.

Required entries and incomplete forms are highlighted with red.

Entries calculated by TaxWise are highlighted with yellow. You can't type
directly in a calculated entry or delete the calculated value unless you
override the calculation.

Real-time Calculations

Calculations are made instantly with every entry.

There are no extra buttons to push, no need to wait for a lengthy "re-calc"
process. You enter data only once.
Data flows automatically from supporting forms to the primary form and
from federal forms to state forms.

Forms-based Data Entry

Our on-screen forms are instantly familiar because they are replicas of the
paper IRS forms.
It's easy to see what the form will look like when printed and a cinch to
teach your staff how to use the program.

K-1 Pass-Throughs

K-1 data is carried automatically from business returns to the appropriate

1040 return, assuring accuracy while saving time and keystrokes.

Business Asset Worksheet

Easy entry of fixed asset information.

Program automatically selects recommended depreciation methods based on

an asset type.
19 depreciation methods pre-calculated.

Customized Forms List

Simplify tax prep by removing seldom or never-used forms from the forms
list.
"Use Private Forms" enables you to customize the Find a Form screen to suit
your tax practice.

Comprehensive Diagnostics

Warnings of possible inconsistencies in tax information.

A list of overridden entries.
Electronic filing errors - The red text is a hyperlink to the form that needs
correction.
A summary of the return, including forms to be filed, AGI, tax, refund or
balance due

Online Help

Context-sensitive help is available for each line as you move through the
forms
Help is just a hotkey away!
Press F1 for TaxWise program help.
Press Shift+F1 for IRS instructions.
Access IRS Pub. 17 and the TaxWise User Guidefrom the toolbar.

Built-In Data

There's lots of valuable data built into TaxWise, including:

o Business codes
o Amortization codes
o W2 codes
o 1099 codes

Management Reports

Use one of our standard reports or create your own.

Our open database compliant (ODBC) format allows you to track returns
and analyze data using spreadsheets and reports you create with software
such as:
o Crystal Reports

o Microsoft Access

o Microsoft Excel

Database Features

Track Return Status You can quickly check the status of any return
without leaving the return you are currently working on.
Automatic Updates Your database is updated every time you connect to
our Electronic Filing Center.
ODBC Compliant Database information can be used directly by database,
spreadsheet, and report writing applications.

Security Features

Restrict access to critical tasks such as transmitting returns and check

printing with Security Manager.
Control which actions each person in your office can perform.
Pasword-protect each preparer's returns. The administrator has access to all
passwords in case a password is forgotten.
Lock per-form prices so they cant be accidentally changed.

Conversion Software

Don't worry about losing all your client data when you switch to TaxWise.
Conversion software is available for most competitors tax programs.
Click here for a list of available software conversions.

3-year Summary

Compiles data from the client's current return and two previous returns for
comparison.

Includes gross income, AGI, itemized deductions (with comparison to

national averages), exemptions, credits, tax paid and refunds.
A 'get organized' tool for your client and a direct-mail promotion for your
tax office.

W-4 Planner

Help your clients avoid a balance due by estimating next year's tax and
adjusting withholding.
Print a W-4 form your clients may submit to employers to change
withholding status, amounts and exemptions.

Carry Forward of Prior Year Data

Copy relevant client data from last year's return into the current return,
saving time and keystrokes.
Bring forward taxpayer name, address, dependents, Depreciation
Worksheets, capital loss carryovers, and other amounts.
Tax form defaults can also be carried forward from year to year so you don't
have to re-type information such as your name, firm name, address, and
phone.

Custom Client Letters and Organizers

Print a letter containing data from your client's return.

Choose a standard letter from the templates provided, or customize the text
and create your own template.
Create custom organizers to mail to clients prior to the tax season. Or
convert the organizer to a PDF file and e-mail it to the client.

Automatic Billing Calculate your fees on the basis of:

Time working in the return, or

Number and type of forms and worksheets, or
Both time and forms.
Easily adjust the amount billed by a dollar amount or percentage of the total.
Print the invoice with the return

"What if" Mode

Test any number of hypothetical tax scenarios for your clients.

Save test scenarios for future reference or replace data in the current return
with the new information.
Useful as a planning and advisory tool for clients who can accelerate and
delay income, deductions or capital expenditures.

Married Filing Separate / Married Filing Joint status tax optimization

For married taxpayers, TaxWise computes federal tax liability using both
joint and separate filing statuses.
The filing status scenario with the lowest tax is presented.
Preparers have the option to automatically generate separate tax returns for
each spouse, as desired.

CONCLUSION

BIBLIOGRAPHY.

http://bsaefiling.fincen.treas.gov/main.html
http://www.taxwise.com/products/features.aspx
http://en.wikipedia.org/wiki/TurboTax
http://indiagovernance.gov.in/bestpractices.php?id=734
http://crcsogema.com/sigtas-en.html
http://www.goodjobsfirst.org/subsidy-tracker